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The next stage of regulation of the cryptocurrency market in India

02/26/2019
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  • cryptocurrency_India
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India’s share in global GDP is 3.1%. At the same time, it takes only 0.2% of the global investment in blockchain technology. The reason is the absence of rules regulating the crypto market and very tight restrictions. Against this background, the information that the country's Supreme Court has allocated 4 weeks for the adoption of laws serves as a good signal.

Problems of the Indian cryptocurrency market regulation method

Countries use different methods to control the turnover of the cryptocurrency market. The hardest scenario was chosen by the Indian government. There are no laws on this subject, and at the same time punish entrepreneurs for their initiative.

In October 2018, the co-founder of the Unocoin exchange was arrested for installing a cryptomat. The trading platform can exchange digital financial assets, but it is strictly prohibited to use Indian rupees for trading.

In the summer of 2018, the Central Bank of the country ordered to ban any service of cryptocurrency exchanges, which led to the closure of part of trading platforms. Others were forced to change their regional affiliation and moved to neighboring countries. At the same time, the authorities planned to introduce a complete ban on the storage of cryptocurrencies, even for individuals.

Finding a way out

The total investment in the blockchain is only about $ 8.5 million. To solve the problem, part of the owners of trading platforms appealed to the Supreme Court of India. But here they can not make a final verdict. The government before the end of 2018 promised to accept the rules of cryptocurrency regulation. However, this is still not done.

The Subhash Garga Commission established for this purpose does not provide any information either. A very authoritative meeting with representatives of the Central Bank and the Ministry of Finance is not yet able to come to a common opinion.

It seems that the Supreme Court just ran out of patience. It made a determination to the government. It is given four weeks to create cryptocurrency market regulations. And then on their basis the final decision will be made.

Response rules for digital financial assets and blockchain in other countries

States use different methods of controlling the cryptocurrency market. The pioneer is Japan, which first legalized the cryptocurrency turnover. Now there are 16 trading platforms in the country, which are managed by a self-regulating association under the supervision of the FSA. The largest financial corporations in the country are launching the blockchain for exchange transactions in stablcoins, which will save billions of dollars.

Swedish authorities announced plans to launch a national cryptocurrency. It has already received the name e-krone, work is underway to test its capabilities when conducting financial transactions.

In Australia, quite liberal laws were passed. Since the beginning of 2018, the Financial Monitoring Agency has registered 246 trading platforms. The situation in the United States is also quite interesting. Despite tough laws, the Americans managed to significantly use the potential of the blockchain. It is necessary to recognize the effectiveness of the local administrative system, which responds to public inquiries fairly quickly.

It is noteworthy that the regulation of the cryptocurrency market in South Korea is made with an eye on the American experience. A few days ago, an anonymous official said that they are guided by the actions of the SEC to negotiate Bitcoin-ETF contracts.

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